Incentive Refund Scheme has been launched by the Labor Ministry in order to bring about the concept popularly known as “one-employee-one-PF-account”. The scheme encourages the employers to provide a UAN to their employees.
UAN or the Universal Account Number is allotted to the subscribers under EPFO to manage multiple PF accounts under a single window. This introduction of UAN was to bring about transparency and accountability to the EPF system.
UAN is useful for those subscribers whose accounts are scattered. The consolidation of these multiple accounts under a single UAN will bring about convenience for the user so that he has complete control over the EPF account.
The EPFO has also advised the employers and the subscribers to also seed their KYC details such as Aadhar Card to their PF accounts. This will be useful for accessing a variety of services such as email and SMS alerts, access to e-passbook etc.
The employer has to ensure that all the employees who come under EPF have been allotted an UAN and that their KYC have also been seeded. To speed up the process of UAN allocation and KYC seeding an Incentive scheme has been launched for the employers.
The scheme will enable employers to claim a refund of up to 10% of the administrative charge paid by them in each quarter, provided they qualify for it based on certain criteria.
The scheme will be effective from January 1st to December 31st, 2016, a labor ministry notification said last month.